Traiana, a NEX Group business which monitors pre-trade risk and automates post-trade processing of financial transactions, announces today that it has launched Swaps Centre, a suite of services which enable swaps providers to electronically manage payments and confirmations in equity swaps. By sending confirmations and uploading payment instructions in normalized formats to their entire client base for Total Return Swaps (TRS), Swaps Centre provides swap providers and their clients with an efficient, cost effective and lower risk solution for managing events during the course of equity swap transactions.
Available via Traiana’s Harmony Network, clients can access a user interface (UI) for both confirmations and payment notifications. The UI will allow them to view confirmations across their swap providers, accept them electronically and, if necessary, view original documentation online. When managing payments, clients will be able to electronically view and accept payment terms. For banks, the service will also help them to meet regulatory requirements to provide an efficient tool for multi-client confirmations.
Swap providers currently rely on manual processes that can be slow, inefficient and costly and that lead to inaccuracies, human error, increased risk and a higher frequency of profit and loss (P&L) breaks. Swaps Centre is designed to reduce or eliminate these problems, and works alongside Traiana’s successful Equity Swaps solution. This reduces the cost and complexity of post-trade processing for the contract for difference (CFD)/ equity swaps market by providing a central, automated and secure electronic messaging and matching services to buy and sell side firms on trade date.
Laura Craft, Director of Securities Strategy at Traiana, said: “These new services will help firms to improve operational efficiency and reduce the frequency of P&L breaks as a result of inaccuracies and discrepancies. As the process is electronic, and enables normalized data sets, this can also be done much more quickly – daily rather than monthly – which has additional financial and operational efficiency advantages and ensures a greater degree of certainty in the T+1 and beyond reconciliation process via a dynamic and flexible online tool.”
Currently the services is only available only for short form TRS with a wide range of underlying asset including Equities, Fixed Income, ADR/GDRs, Sectors, Indices, Custom Baskets. The objective is to extend it to other asset classes in the future.